An economy that operates below its full-employment capacity experiences
a. disequilibrium
b. unrealizable inflationary expectations
c. a gap in aggregate demand
d. an inflationary gap
e. a recessionary gap
E
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The federal budget has been in deficit in all but 9 years since 1960
a. True b. False Indicate whether the statement is true or false
Which of the following is true? a. The nominal wage will be constant only if the inflation rate is constant
b. The real wage will be greater than the nominal wage only if the inflation rate is constant. c. The nominal wage and the real wage will change by the same amount if the price level is constant. d. The real wage will be equal to one only if the price level is zero. e. The real wage will be constant only if the nominal wage is constant.
Suppose Jordan and Lee are trying to decide what to do on a Friday. Jordan would prefer to see a comedy while Lee would prefer to see a documentary. One documentary and one comedy are showing at the local cinema. The payoffs they receive from seeing the films either together or separately are shown in the payoff matrix below. Both Jordan and Lee know the information contained in the payoff matrix. They purchase their tickets simultaneously, ignorant of the other's choice. 
Which of the following statements is true?
A. Jordan's dominant strategy depends on Lee's choice. B. For Jordan, seeing a comedy is a dominant strategy. C. For Jordan, seeing a documentary is a dominant strategy. D. Jordan does not have a dominant strategy.
In the market for domestic avocados, what would happen to the market clearing price and the equilibrium quantity if there was a drought in avocado growing areas?
A. The market clearing price would rise, and the equilibrium quantity would rise. B. The market clearing price would fall, and the equilibrium quantity would rise. C. The market clearing price would fall, and the equilibrium quantity would fall. D. The market clearing price would rise, and the equilibrium quantity would fall.